This topic covers corporate accounting and finance. Based on the readings and your experience, explain how employers put themselves at potential risk with reporting on issues that lead to financial risks. Offer at least two ways they can avoid or mitigate this type of risk.
Can be 1 to 2 paragraphs. APA Format
Requirements: .doc file
Answer preview
To manage the risk associated with insider trading during financial reporting, employers should ensure that they secure the company’s flow of income. The following two ways can help managers keep the company out of financial risks. First, managers should make sure that accounts receivable are low at all times. They can do that by ensuring that invoices issued to customers are paid on time. In so doing, managers can guarantee a steady income generation. Secondly, managers can diversify the company’s income to avoid bankruptcy. When the company’s income is too low, it stand a risk of corporate takeover. Therefore, managers should make sure that the company has more than one income source. For example,
